Banks Acting In “Bona Fide” Manner Cannot Be Made Answerable For Economic Decisions: Delhi High Court

The Delhi High Court reaffirmed that banks forming an essential pillar of India’s economy cannot be routinely held answerable to courts for their commercial-economic decisions unless there is cogent material of mala fide or violation of law. The judgment underscores the recognition that regulatory oversight and judicial intervention have different roles: while courts can examine legality, they should not substitute business judgments or disturb bona fide banking decisions simply on allegation of impropriety in absence of specific evidence.